The government extended the ‘Modified Special Incentive Package Scheme’ (MSIPS) by five years.
Moreover, the scope of the programme has also been expanded to cover 15 new product categories. The new product categories included in the MSIPS are: smart cards, electronic product design, consumer appliances (like washing machines, refrigerators, air conditioners), optical fibres and Internet of Things (IoT) products, among others.
According to report, the decision has been taken to boost the Make in India and Digital India inititives.
The scheme was originally approved the government in July 2012 to promote large-scale manufacturing in the Electronic System Design and Manufacturing (ESDM) sector.
The scheme provides subsidy for investments in capital expenditure – 20% for investments in SEZs and 25% in non-SEZs. It also provides for reimbursement of CVD/excise for capital equipment for the non-SEZ units. For high technology and high capital investment units, like fabs, reimbursement of central taxes and duties is also provided.
